Peter F Drucker Leadership Quotes

Whenever you see a successful business, someone once made a courageous decision.

Efficiency is doing the thing right. Effectiveness is doing the right thing.

Your first and foremost job as a leader is to take charge of your own energy and then help to orchestrate the energy of those around you.

Leadership is not magnetic personality, that can just as well be a glib tongue. It is not "making friends and influencing people", that is flattery. Leadership is lifting a person's vision to higher sights, the raising of a person's performance to a higher standard, the building of a personality beyond its normal limitations.

1. What is our mission? 2. Who is our customer? 3. What does the customer value? 4. What are our results? 5. What is our plan?2

The danger is in acting on what you believe satisfies the customer. You will inevitably make wrong assumptions. Leadership should not even try to guess at the answers; it should always go to customers in a systematic quest for those answers.

To do the most good requires saying no to pressures to stray, and the discipline to stop doing what does not fit.

Intelligence, imagination, and knowledge are essential resources, but only effectiveness converts them into results. By themselves, they only set limits to what can be attained.

Rank does not confer privilege or give power. It imposes responsibility. —Peter F. Drucker

What is our mission? Who is our customer? What does the customer value? What are our results? and What is our plan?

Today knowledge has power. It controls access to opportunity and advancement. Knowledge has to be improved, challenged, and increased constantly, or it vanishes.

No institution can possibly survive if it needs geniuses or supermen to manage it. It must be organized in such a way as to be able to get along under a leadership composed of average human beings.

DuPont, for 130 years, had confined itself to making munitions and explosives. In the mid-1920s it then organized its first research efforts in other areas, one of them the brand-new field of polymer chemistry, which the Germans had pioneered during World War I. For several years there were no results at all. Then, in 1928, an assistant left a burner on over the weekend. On Monday morning, Wallace H. Carothers, the chemist in charge, found that the stuff in the kettle had congealed into fibers. It took another ten years before DuPont found out how to make Nylon intentionally. The point of the story is, however, that the same accident had occurred several times in the laboratories of the big German chemical companies with the same results, and much earlier. The Germans were, of course, looking for a polymerized fiber—and they could have had it, along with world leadership in the chemical industry, ten years before DuPont had Nylon. But because they had not planned the experiment, they dismissed its results, poured out the accidentally produced fibers, and started all over again.

The climate for relationships within an innovation group is shaped by the climate outside it. Having a negative instead of a positive culture can cost a company real money. During Seagate Technology’s troubled period in the mid-to-late 1990s, the company, a large manufacturer of disk drives for personal computers, had seven different design centers working on innovation, yet it had the lowest R&D productivity in the industry because the centers competed rather than cooperated. Attempts to bring them together merely led people to advocate for their own groups rather than find common ground. Not only did Seagate’s engineers and managers lack positive norms for group interaction, but they had the opposite in place: People who yelled in executive meetings received “Dog’s Head” awards for the worst conduct. Lack of product and process innovation was reflected in loss of market share, disgruntled customers, and declining sales. Seagate, with its dwindling PC sales and fading customer base, was threatening to become a commodity producer in a changing technology environment. Under a new CEO and COO, Steve Luczo and Bill Watkins, who operated as partners, Seagate developed new norms for how people should treat one another, starting with the executive group. Their raised consciousness led to a systemic process for forming and running “core teams” (cross-functional innovation groups), and Seagate employees were trained in common methodologies for team building, both in conventional training programs and through participation in difficult outdoor activities in New Zealand and other remote locations. To lead core teams, Seagate promoted people who were known for strong relationship skills above others with greater technical skills. Unlike the antagonistic committees convened during the years of decline, the core teams created dramatic process and product innovations that brought the company back to market leadership. The new Seagate was able to create innovations embedded in a wide range of new electronic devices, such as iPods and cell phones.

Management and the Liberal Arts Management is a liberal art. Management is what tradition used to call a liberal art—“liberal” because it deals with the fundamentals of knowledge, self-knowledge, wisdom, and leadership; “art” because it deals with practice and application. Managers draw upon all of the knowledges and insights of the humanities and social sciences—on psychology and philosophy, on economics and history, on the physical sciences and ethics. But they have to focus this knowledge on effectiveness and results—on healing a sick patient, teaching a student, building a bridge, designing and selling a “user-friendly” software program.   ACTION POINT: What is your plan to develop yourself in the humanities and social sciences? Develop such a plan today. The New Realities

the standard of any human group is set by the performance of the leaders. And he, therefore, never allows leadership performance to be based on anything but true strength.

5. But – and this is the final ‘do’ – a successful innovation aims at leadership. It does not aim necessarily at becoming eventually a ‘big business’; in fact, no one can foretell whether a given innovation will end up as a big business or a modest achievement. But if an innovation does not aim at leadership from the beginning, it is unlikely to be innovative enough, and therefore unlikely to be capable of establishing itself. Strategies (to be discussed in Chapters 16 to 19) vary greatly, from those that aim at dominance in an industry or a market to those that aim at finding and occupying a small ‘ecological niche’ in a process or market. But all entrepreneurial strategies, that is, all strategies aimed at exploiting an innovation, must achieve leadership within a given environment. Otherwise they will simply create an opportunity for the competition.

Skills Mistakes: Leadership Too Weak, Communication Too Poor Undervaluing and underinvesting in the human side of innovation is another common mistake. Top managers frequently put the best technical people in charge, not the best leaders. These technically oriented managers, in turn, mistakenly assume that ideas will speak for themselves if they are any good, so they neglect external communication. Or they emphasize tasks over relationships, missing opportunities to enhance the team chemistry necessary to turn undeveloped concepts into useful innovations. Groups that are convened without attention to interpersonal skills find it difficult to embrace collective goals, take advantage of the different strengths various members bring, or communicate well enough to share the tacit knowledge that is still unformed and hard to document while an innovation is under development. It takes time to build the trust and interplay among team members that will spark great ideas. MIT researchers have found that for R&D team members to be truly productive, they have to have been on board for at least two years. At one point, Pillsbury realized that the average length of time the company took to go from new product idea to successful commercialization was 24 to 26 months, but the average length of time people spent on product teams was 18 months. No wonder the company was falling behind in innovation.

But a company which wants economic results has to have leadership in something of real value to a customer or market. It may be in one narrow but important aspect of the product line, it may be in its service, it may be in its distribution, or it may be in its ability to convert ideas into salable products on the market speedily and at low cost.

Leadership is lifting a person’s vision to higher sights, the raising of a person’s performance to a higher standard, the building of a personality beyond its normal limitations. Peter F. Drucker and Joseph A. Maciariello, Management: Revised Edition, 2008, p. 288.